--- title: What the Democrats Winning Georgia Means for Your Wallet description: The Democrats have a chance to pass legislation ranging from $2,000 stimulus checks to student loan forgiveness. authors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Economy and Politics - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum - name: Kaitlin Mulhere role: Editor url: https://money.com/author/kaitlin-mulhere/ bio: Kaitlin Mulhere is an editor at Money.com. Since joining in 2015, she’s written and edited about a variety of personal finance topics, including banks, credit, student debt, saving strategies and more. education: University of Florida at_money_since: 2015 articles: 217 covers: - Economy and Politics - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Retirement - Shopping - Taxes social: - https://twitter.com/KMulhere - https://www.linkedin.com/in/kaitlin-mulhere-64503048/ - name: Elizabeth O'Brien role: Deputy Editor url: https://money.com/author/elizabeth-obrien/ bio: Elizabeth O’Brien is Money's deputy editor. She has covered personal finance for more than 10 years, with a focus on retirement planning and health care. Subscribe to her weekly newsletter, Retire with Money. at_money_since: 2016 articles: 194 covers: - Economy and Politics - Business - Career Advice - Credit - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Personal Finance - Pets - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/elizobrien former_staff: true - name: Ian Salisbury role: Senior Editor url: https://money.com/author/ian-salisbury-2/ bio: Ian Salisbury was a senior editor at Money, focusing on investing, banks and mortgage. at_money_since: 2013 articles: 91 covers: - Economy and Politics - Housing - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Retirement - Shopping - Taxes former_staff: true - name: Samantha Sharf role: Editor url: https://money.com/author/samantha-sharf/ bio: Samantha Sharf is Money's real estate editor. She previously wrote about amazing homes and billion-dollar real estate entrepreneurs for Forbes. at_money_since: 2020 articles: 34 covers: - Economy and Politics - Housing - Lifestyle - Mortgages - Personal Finance social: - https://twitter.com/samsharf - https://linkedin.com/in/samanthasharf/ former_staff: true published: '2021-01-06T16:48:40.000Z' modified: '2024-01-10T16:11:31.000Z' section: Economy and Politics tags: - '2021' - election 2020 - family finance - jumbo mortgages - mortgages - News - stimulus checks - student debt - Taxes word_count: 1087 canonical: https://money.com/georgia-election-results-runoff-your-money/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Senate-Biden-Warnock-Ossoff](https://img.money.com/2021/01/GettyImages-1294511866.jpg) Two months after Americans elected Democrat Joe Biden president, his economic agenda — from bigger stimulus checks to higher taxes on the wealthy — just got a big shot in the arm. This week voters in the state of Georgia went to the polls to settle runoffs for the state's two Senate seats. Ultimately, Democrats captured both — giving them a slim majority of that chamber and with it, control of both houses of Congress and the White House for the first time since 2011. The upshot is that Democrats could have an unexpected opportunity to pass a slew of new legislation that just weeks ago seemed like wishful thinking. Here's what the Democratic sweep in Georgia means for your wallet: ## More Stimulus Checks After a lengthy standoff that ended in President Donald Trump begrudgingly signing $600 stimulus checks into law last week, legislators on both sides of the aisle demanded larger direct payments. The Democratic-controlled House passed a proposal that would have provided Americans with $2,000 checks, but the Senate refused to vote on it. (Senate Majority Leader Mitch McConnell, [called the bill](https://www.politico.com/news/2020/12/31/lindsey-graham-mcconnell-separate-vote-2-000-checks-453015) “socialism for rich people.”) Now, with Democrats holding the upper chamber as well, those bigger checks are a real possibility. President-elect Joe Biden has promised as much, [saying](https://www.cnn.com/2021/01/04/politics/biden-campaigning-georgia-runoffs/index.html) Monday that “if you send Jon \[Ossoff\] and the Rev. \[Raphael Warnock\] to Washington, those $2,000 checks will go out the door, restoring hope and decency and honor for so many people who are struggling right now.” In the meantime, read more about the eligibility for the second stimulus check [here](https://money.com/second-stimulus-600-payment-information/). Learn what to do if you haven’t received the payment yet [here](https://money.com/track-second-stimulus-check/). ## Higher Taxes for the Richest Americans Biden campaigned on promises to improve the country’s healthcare, education and infrastructure, but to accomplish any of that, he needs money. Enter: Biden’s tax plan, which would raise roughly $4 trillion over a decade by increasing taxes on wealthy individuals and corporations. Biden wants to raise the top corporate tax rate to 28% (President Trump cut this rate from 35% to 21% in 2017). For individuals, Biden plans to roll back reductions for individuals with incomes above $400,000. He’ll also impose the 12.4% Social Security payroll tax on earnings over $400,000. The president-elect also wants to [expand some tax credits](https://money.com/joe-biden-tax-plan-tax-credits/) for middle- and lower-income households, including temporarily increasing the Child Tax Credit to a maximum of $3,000, up from $2,000 for children between the ages of 6 and 18. There’d be an additional $600 (for a total of $3,600) for children under 6. He’d permanently expand the Child and Dependent Care Credit, which gives caregivers a credit to offset the cost of childcare. What’s all this mean for you? The left-leaning Tax Policy Center says the majority of the tax hikes would be paid by the top 1% of earners. Meanwhile, the bottom 80% of taxpayers would see small tax cuts in 2022, worth between $540 and $760 in after-tax income, per [TPC’s estimates](https://www.taxpolicycenter.org/model-estimates/updated-analysis-former-vice-president-bidens-tax-plan-october-2020/t20-0239-former). ## Obamacare Gets a Boost President-elect Biden has pledged to strengthen the Affordable Care Act (aka, Obamacare), and a Democratic-controlled Senate will make legislation to accomplish that easier. That said, big changes — such as adding a government-run public option to the state health insurance marketplaces — are by no means a “slam dunk” under a narrow Democratic majority, says Linda J. Blumberg, an institute fellow at the Urban Institute. Perhaps a more likely move would be an expansion of premium subsidies that would make health insurance more affordable for consumers whose incomes exceed the current cut-off, and also for low-income consumers in states that haven’t expanded their Medicaid program, Blumberg says. But before making these changes to the Affordable Care Act, Congress could help save its life: the law faces a serious threat before the U.S. Supreme Court, and lawmakers could vote on certain measures in an effort to void the plaintiff’s argument and get the case thrown out of court. ## (Some) Student Debt Forgiveness Despite prodding from progressives, Biden has [said](https://www.washingtonpost.com/opinions/trump-is-trashing-the-government-on-his-way-out-biden-is-confident-he-can-fix-it/2020/12/23/c69fc9c2-4553-11eb-b0e4-0f182923a025_story.html) he's unlikely to use executive powers to cancel some of the country’s more than $1.5 trillion in student loan debt. With Democratic control of Congress, he has a chance to get modest debt forgiveness approved via legislation, which seems to be his preference. It’s still unclear how much debt cancellation might be approved or what sort of eligibility would be tied to forgiveness. Biden originally campaigned on plans to eliminate undergraduate debt for Americans who attended public colleges and historically Black colleges and universities (HBCUs). And in November, Biden said in a press conference that student debt relief was part of his economic plan and that it “should be done immediately.” At the time, he specifically highlighted a coronavirus relief bill that had passed the House of Representatives and included $10,000 of debt forgiveness to struggling private loan borrowers. (Previous versions of the same bill included forgiveness for federal and private borrowers.) ## Help for First Time Homebuyers As part of his $640 billion housing plan, President-elect Biden has proposed a first-time homebuyer tax credit of up to $15,000. He pitches it as a way to expand homeownership, particularly in communities of color. The idea of offering a credit to help homebuyers isn’t entirely new. Biden’s plan builds off a temporary credit that was available during the Great Recession. From 2008 to 2010, a first-time buyer could receive up to $8,000 toward a down payment. What makes Biden’s plan different is that it would be permanent and “advancable,” meaning buyers could claim it at the time of purchase rather than waiting until they file their taxes. The proposal is sure to appeal to house hunters, who say saving enough for a down payment is the biggest hurdle to buying a home. A $15,000 credit would provide about 4% of a median-priced home. Some industry experts, however, warn that the plan would boost demand, making it even harder to buy in today’s hyper-competitive and low-supply market. Right now, housing is a bright spot in the pandemic economy, meaning the credit may not be the new administration’s first priority. When the plan does make it to Congress, Democratic control will make it much more viable. “The Senate runoffs in Georgia in January act as the X factor,” said Ali Wolf, chief economist at Zonda Home, in an interview with Money last month. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/georgia-election-results-runoff-your-money/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Economy and Politics", "item": "https://money.com/economy-and-politics/" }, { "@type": "ListItem", "position": 3, "name": "Elections", "item": "https://money.com/elections/" }, { "@type": "ListItem", "position": 4, "name": "What the Democrats Winning Georgia Means for Your Wallet" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/georgia-election-results-runoff-your-money/#webpage", "url": "https://money.com/georgia-election-results-runoff-your-money/", "name": "What the Democrats Winning Georgia Means for Your Wallet", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2021-01-06T16:48:40.000Z", "mainEntity": { "@id": "https://money.com/georgia-election-results-runoff-your-money/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/georgia-election-results-runoff-your-money/#breadcrumb" }, "dateModified": "2024-01-10T16:11:31.000Z" }, { "@type": "NewsArticle", "headline": "What the Democrats Winning Georgia Means for Your Wallet", "articleSection": "Economy and Politics", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2021/01/GettyImages-1294511866.jpg", "width": 2880, "height": 1920, "caption": "Senate-Biden-Warnock-Ossoff" } ], "author": [ { "@type": "Person", "name": "Julia Glum", "url": "https://money.com/author/julia-glum/", "@id": "https://money.com/author/julia-glum/#author", "description": "Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. 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